Investment firms continue to show a rising interest in impact, creating an opportunity for capital to contribute to the transition to renewable energy. The World Economic Forum states that limited partners are increasingly allocating capital specifically for impact, energy transition, and sustainable solutions. In Latin America’s emerging markets, investors see opportunities for both impact and returns. Impact investing in Latin America grew more than tenfold in a decade, reaching $25 billion in 2022. Countries like Mexico, Brazil, Colombia, and Chile are at the forefront with projects in agriculture tech, climate tech, and public health, to name a few.
For decades, Latin America has made investors nervous. Political instability, hyperinflation, commodity collapse, and natural disasters are a few of the reasons why investors see high levels of risk. Furthermore, many countries in the region offer inconsistent regulatory frameworks, high financing costs, and poor infrastructure. Despite these challenges, many look to the area and see opportunity.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
